Independant Mortgages Direct

UK inflation fell to 3.2% in June, down from 3.4% in May. The Consumer Price Index is still above the Bank of England’s 2% target. Falling petrol and diesel prices are by far the main drivers to the downward pressure to CPI annual inflation between May and June. The largest upward pressures to the change in CPI inflation between May and June came from miscellaneous goods and services and air transport. In the year to June, Retail Prices Index’s annual inflation was 5.0%, down from 5.1% in May. The main factors affecting the CPI also affected the RPI. Additionally there was upward pressure to the change in the RPI annual rate from housing. This was driven by house depreciation, which rose this year but fell a year ago. RPIX inflation – the all items RPI excluding mortgage interest payments – was 5.0% in June, down from 5.1% in May.